Both readings were right in line with expectations, according to a survey of economists by CBS MarketWatch.

Still, the rate of inflation is creeping up. In the past year, the CPI has risen 3.5 percent, while the core rate has grown by 2.2 percent. See Economic Report.

A still-modest rise in inflation leaves most observers guessing the Federal Reserve will continue to gradually raise its target lending rate. U.S. rates have been hiked five times so far this year.

But with many other major central banks apparently in pause mode with their own monetary policy changes, the dollar's interest-rate disadvantage to other major currencies is lessening.

The dollar was weaker against the euro in the wake of eurozone economic data.

The closely followed German Ifo business sentiment index surprised to the high side in December, even in the face of the euro's strength, said analysts at ABN Amro.

The Ifo rose to 96.2 from 94.1, compared to a consensus for 93.9. This was the biggest advance in a year and was due to both the current assessment of the business outlook, at a three-year high, and expectations.

The dollar had gained broadly, especially against the euro, on Thursday, after a report on the third-quarter U.S. current account deficit proved not as dire as many economists were predicting. See Economic Report.

But most economists and currency analysts believe the structural stress on the dollar from its trade and budget deficits will continue in 2005.

The dollar has been able to glean only mild support from a rosier U.S. economic outlook, as emphasis on the deficits overshadows other data.

Although the dollar is holding above recent lows as the year draws to a close, no clear market theme exists to swing the dollar higher or lower, said Ryohei Muramatsu, manager of group treasury Asia at Commerzbank AG in Tokyo.

"Foreign investors will likely close their books by Monday and resume building positions after Christmas," he said. "Profit-taking, especially on the euro long positions, is expected to support the dollar until Christmas, but the euro is likely to resume its climb next year."

The Bank of Japan on Friday left its ultra-easy monetary policy steady after a two-day meeting, as widely expected.

The BOJ downgraded its assessment of the economy for the second month in a row.

The government looks for the Japanese economy to slow to a 1.6 percent growth rate in the fiscal year starting next April, after an expected 2.1 percent growth rate this year.

The White House said Friday it sees the U.S. economy slowing to a 3.5 percent annual pace of growth next year, after closing out this year at a 3.9 percent pace.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.